In Reply to: Yes in that case it paid off just like... posted by SL on January 13, 2000 at 18:29:13:
with that analogy, but most people who gamble do so because they think one day they will hit it big.
I would hope there is more intelligence put into the decision whether or not to buy an extended warranty. Due to the age of the car and the miles on it, I felt I did the opposite, not gambled, but made a small insurance deposit with the hope it would not pay itself off.
Another one that comes to mind, friend of mine bought a '98 Boxster which came with only a 2 year warranty at the time. He did not buy an extended warranty, do you think it's a "casino" type gamble to buy an additional 32k mile warranty for his car? If he keeps the car, I hope his engine doesn't blow.
But! Would I buy an extended warranty again? Probably not as I am more financially stable then I was when I bought the 93 BMW and can cover issues that might arise.
It's just not a black and white decision, there are allot of factors involved.
: the person who takes $800 into a casino and comes out with $3600. You hit it lucky. But extended warranties stay around for the same reason casinos do. Most people don't beat the odds.